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Why Utilize Recognition Programs?


The main difference between your company and your competitors’ is the quality of people with whom you have surrounded yourself.  In today’s economy, finding and keeping quality employees is even more crucial.  Praise and recognition are key components toward creating an "encouragement culture" within your organization.  In a nutshell, recognition programs improve staff engagement and an engaged staff will drive better business results.  What kind of results?   Here's how much a Highly engaged staff can deliver over a Poorly engaged staff (International Survey Research, LLC  Study):   

    Recognition programs yield higher productivity and ROI86% higher customer loyalty
    70% more success in lowering turnover
    70% high productivity
    44% higher profitability
    78% better safety records
    27% increase in Earnings per Share
 
The benefits of engagement are self-evident, but what are the costs of disengagement? (Gallup, Robert Half International):
  • Only 14% of workers are satisfied with their job…
  • 80% of employees believe they get no respect at work
  • 3 out of 4 workers are looking for a new job either actively or passively
  • 86% of employees are not willing to go the extra mile for the company 
  • 79% of US workers say they are not engaged in their job…
  • Nearly $400 billion annually is lost in productivity due to employee disengagement

The cost to replace an employee, by conservative estimates, is over $13,000.  Employee turnover alone will impact a 500 employee company that replaces 10% of its workforce annually by over $650,000.  Factor in lower productivity, safety & health issues, etc., and the repercussions of disengagement really add up.

What tools are available to attract, retain and motivate employees?

Three tools of your motivation mix

Work experience (defined as acknowledgement/recognition; balance of work/life; culture; development; and environment) is the only factor in your reward/motivational mix that cannot be immediately duplicated by your competition. It is totally proprietary.

Your Solution?

  1. Create a fun workplace – unhappy employees are rarely productive
  2. Stress the employee/manager relationship -people don’t leave companies…they leave managers!
  3. Be consistent and regular with recognition
  4. Become an employer of choice
  5. Be excellent at communication
  6. Offer great career opportunities
  7. Deliver on the promise of work-life balance

How does recognition help?

  • Recognition (a positive reinforcer) causes performance to recur
  • Recognition motivates employees to stretch – perform over and above
  • Recognition identifies role models
  • Recognition communicates that people are valued (a driver of engagement and loyalty)
  • Recognition fosters a sense of community

What do the best companies (Malcom Baldridge Award Winners) do?

Recognition:

  • Is linked to business strategy, vision and quality
  • Focuses on employee input and peer recognition
  • Uses multi-layered programs within a system
  • Recognizes both individuals and teams
  • Rewards results and activity
  • Links rewards to performance
  • Uses tangible rewards
  • Utilizes an intensive communications strategy
  • Includes measurement and accountability